Hibret Insurance Profit Growth Limited by Tax Hike

Hibret Insurance has released its financial results for the 2026 fiscal year. While the company grew pre-tax profit by 37 percent to 1.38 billion birr, a sharp rise in tax expenses limited net profit growth to 14.5 percent. The company attributed this tax increase to legislative changes affecting investment income. Despite higher gross written premiums reaching 3.42 billion birr, operating costs, driven by claims inflation and economic pressures, impacted overall performance. The board acknowledged the challenges posed by inflation and claims management. Additionally, the company is actively expanding its capital base, with paid-up capital rising to 1.88 billion birr. Shareholders are set to consider a proposed dividend distribution of 868.8 million birr.